Every time I used to read this verse I thought of God as some cross between both male and female, it might have been my inexperience when reading this verse that triggered that but recently I had a revelation. No doubt, those more intelligent than I quickly found that this verse is not speaking of physically being made in God's image but spiritually. God is all good, there is no bad in him, before the fall we were designed in the same way. This is where our sense of morals come from, we were designed to be good. After the fall things changed and now we have to make a decision between right and wrong, beforehand we had no need to make these decisions, we were made in the likeness of God.

P.S. - In no way am I saying that we are we equal with God, we were simply modeled from his perfect being. I just wanted to make sure that it didn't come off like that.

Genesis 1:26